Pure Storage(US:PSTG) ZACKS·2025-11-04 23:50Core Viewpoint - Pure Storage is expected to show strong earnings growth in its upcoming earnings report, with significant increases in both EPS and revenue compared to the previous year [2][3]. Group 1: Stock Performance - In the latest trading session, Pure Storage (PSTG) declined by 3.55% to $95.10, underperforming the S&P 500's daily loss of 1.17% [1]. - Over the past month, shares of Pure Storage have increased by 9.16%, outperforming the Computer and Technology sector's gain of 5.49% and the S&P 500's gain of 2.12% [1]. Group 2: Earnings Estimates - Pure Storage is projected to report an EPS of $0.59, reflecting an 18% growth year-over-year [2]. - The consensus estimate for revenue is $956.49 million, indicating a 15.09% increase from the same quarter last year [2]. - For the full year, earnings are estimated at $1.97 per share and revenue at $3.62 billion, showing increases of +16.57% and +17.56% respectively from the previous year [3]. Group 3: Analyst Sentiment - Recent adjustments to analyst estimates for Pure Storage indicate a positive outlook, suggesting confidence in the company's performance and profit potential [3]. - The Zacks Rank system currently rates Pure Storage as 2 (Buy), reflecting a positive sentiment among analysts [5]. Group 4: Valuation Metrics - Pure Storage has a Forward P/E ratio of 50.05, significantly higher than the industry average of 19.98, indicating that it is trading at a premium [6]. - The company's PEG ratio stands at 2.98, compared to the industry average PEG ratio of 2.05, suggesting a higher valuation relative to expected earnings growth [7]. Group 5: Industry Context - The Computer-Storage Devices industry, to which Pure Storage belongs, is ranked 40 in the Zacks Industry Rank, placing it in the top 17% of over 250 industries [7]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for growth in this sector [8].